More Information

Convention center hotel developer exploring options

Published: Wednesday, May 8, 2013 at 3:00 p.m.

Last Modified: Wednesday, May 8, 2013 at 3:00 p.m.

The developers angling to build an upscale hotel next to the Wilmington Convention Center are working on a backup plan if they experience further financing delays.

The developer, Harmony Hospitality of Virginia, has been waiting on paperwork to wind through the federal government. The paperwork is for the Immigrant Investor Program, known as EB-5, which is administered by the U.S. Citizenship and Immigration Services. The program allows foreign investors a fast track to obtain a green card, which allows non-citizens permanent residency.

Harmony filed paperwork in June of 2012, but still hasn't heard back.

At a Tuesday night city council meeting, Harmony's Brooks Johnson said the developers are looking at other financing alternatives so they can keep the project moving forward.

At the meeting, the council voted unanimously to grant Harmony a third extension to a development agreement first launched in February 2012. The agreement is now extended for 90 days and expires July 31.

Johnson stressed the delay was due to the government.

"We know you're disappointed," he said. "We're disappointed."

Despite the delay, he expressed confidence federal officials will approve the paperwork.

Birch Capital Managing Director Ben Cummings, who is working with Harmony on the project and also spoke Tuesday, underscored that argument.

"We are very confident we can raise these funds just as soon as we get the go-ahead from the immigration service," he said.

At Councilman Kevin O'Grady's request, the council added two additional conditions when it granted Harmony an extension. By June 15, Harmony must have made substantial progress on completing an agreement to purchase the land from the city as well as finalizing easements for the hotel.

In March, Hilton Hotels signed off on Harmony's application to build a $33.6 million, 186-room Embassy Suites on the site, sandwiched between the convention center, the Cape Fear River and the Wilmington Chamber of Commerce. The 163,000-square foot hotel would also include a full-service restaurant on its second floor and 6,600 square feet of meeting space.

<p>The developers angling to build an upscale hotel next to the <a href="http://www.starnewsonline.com/section/topic20"><b>Wilmington Convention Center</b></a> are working on a backup plan if they experience further financing delays.</p><p>The developer, Harmony Hospitality of Virginia, has been waiting on paperwork to wind through the federal government. The paperwork is for the Immigrant Investor Program, known as EB-5, which is administered by the U.S. Citizenship and Immigration Services. The program allows foreign investors a fast track to obtain a green card, which allows non-citizens permanent residency. </p><p>Harmony filed paperwork in June of 2012, but still hasn't heard back.</p><p>At a Tuesday night city council meeting, Harmony's Brooks Johnson said the developers are looking at other financing alternatives so they can keep the project moving forward. </p><p>At the meeting, the council voted unanimously to grant Harmony a third extension to a development agreement first launched in February 2012. The agreement is now extended for 90 days and expires July 31.</p><p>Johnson stressed the delay was due to the government.</p><p>"We know you're disappointed," he said. "We're disappointed."</p><p>Despite the delay, he expressed confidence federal officials will approve the paperwork. </p><p>Birch Capital Managing Director Ben Cummings, who is working with Harmony on the project and also spoke Tuesday, underscored that argument. </p><p>"We are very confident we can raise these funds just as soon as we get the go-ahead from the immigration service," he said.</p><p>At Councilman <a href="http://www.starnewsonline.com/section/topic77"><b>Kevin O'Grady</b></a>'s request, the council added two additional conditions when it granted Harmony an extension. By June 15, Harmony must have made substantial progress on completing an agreement to purchase the land from the city as well as finalizing easements for the hotel.</p><p>In March, Hilton Hotels signed off on Harmony's application to build a $33.6 million, 186-room Embassy Suites on the site, sandwiched between the convention center, the <a href="http://www.starnewsonline.com/section/topic91"><b>Cape Fear River</b></a> and the Wilmington Chamber of Commerce. The 163,000-square foot hotel would also include a full-service restaurant on its second floor and 6,600 square feet of meeting space.</p><p><i></p><p>Julian March: 343-2099</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @julian_march</I></p>